Job Losses at Sea Systems

BAE SYSTEMS PLC
21 January 2003




          BAE SYSTEMS ANNOUNCES JOB LOSSES IN ITS SEA SYSTEMS BUSINESS

BAE SYSTEMS announces 700 job losses in Barrow-in-Furness, 265 in its shipyards
on the Clyde, 50 from Waterlooville and up to 30 jobs at Farnborough, Hampshire.
These actions will be taking effect progressively and the company will enter
into consultations with employees and Trade Union representatives.

Additionally, BAE SYSTEMS announces that it intends to continue to develop
Barrow-in-Furness as its centre for submarine programmes. The company now plans
to consolidate its work on the Type 45 Destroyer build programme into the BAE
SYSTEMS shipyards on the Clyde. This proposal is currently under consideration
by the UK MoD.

The above actions reflect the need to continue to maximise efficiency whilst
retaining the full capability to deliver Sea Systems products into the UK and
export markets.

Issued by

BAE SYSTEMS

London


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